Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
0 L/ X; t; r/ ~& B1 A  o0 O% y" yexpect much from Crude Oil producers and future is not with the
1 x" @4 z, l* Z' Ycompanies producing Jet fuels but Biofuels. Also no wonder if some of
6 R" r' y! a: \- s+ ]( k$ dthese oil producer will go bankrupt or out of the business even if
6 f( g0 Q  D2 [4 a$ ]+ Y3 x- o7 O! G# ~crude prices improves. This implies also to good names such as Shell,
' e  a2 e* G9 |5 gEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
4 k0 `% S* W/ X, KA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.

0 \4 q( i$ z2 U: q0 y2 A2 b
There are several reasons the price of oil is decreasing in the face
( e- N# @0 Y. j% b: V6 yof so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


* e& @( f8 g1 d! q3 C# k) f4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
: E- I2 }8 Q" K# m0 wracing to produce bio fuels.
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6 h8 Q4 V) ^- A% ?5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
7 v; _' ~3 s4 j1 Vproducing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
& d- F' J: f9 s5 P! D' U. g: `construction around the world at this time. Several hundred more are
5 u* b# g( y8 J, @+ yexpected to be built in the future. Much of the energy they produce
& H2 ^, y4 Y3 K% ^will replace oil.
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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
# W4 e; Y$ a# }are experiencing 20% to 25% better fuel econony with the new
6 e6 }) ?2 q; q% h# X. a' Cequipment.
, j' y0 |, G: P- r+ b& c

( y% \2 D* x$ c+ U0 P/ U2 hAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
. i0 T* P& N. Voil.

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9. Coal is being transformed into a clean burning liquid fuel. The CO2
$ |, |6 M, y: S' t' M# h" P" T2 cproduced as a byproduct is sold to oil companies for injection into
: K: v8 F7 m; Xoil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
" ]$ G7 x8 }! t" L" ^price of crude oil but the sum of all of them together is world
. I2 [$ {% e) n* ?; }" xchanging. The important thing is that OPEC no longer has the ability
to control oil prices.

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0 S5 e$ C6 ?" O  n5 h. D# P: bWith the above scenario, I still believe that there are under
! |6 o' P; k+ \performed OIL companies and probably they are yet to get the justified
; I5 Y! q4 Q" {* ~value .....
# L" s8 C; |6 O' J4 i# z$ fIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


7 ]7 ]6 m/ g+ H2 h6 NThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
& C* _1 ]% Y1 o- z7 g& `" O! R2009 ... FYI-Only